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| The Tax Publishers2019 TaxPub(DT) 1259 (Del-HC) : (2019) 263 TAXMAN 0089 INCOME TAX ACT, 1961
Section 220
AO has to necessarily apply his mind to the application for stay of demand and pass appropriate orders having regard to the existing directions and circulars and AO cannot impose a pre-condition for deposit of part demand for consideration of the assessee's application for exemption/stay of demand.
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Stay - Recovery proceedings - AO whether competent to impose a pre-condition of part deposit of demand -
In the instant appeal, assessee contended that its request for stay of demand was not considered on merits at all and that AO had required the deposit of 20% of the demand as a pre-condition, for consideration of the application for exemption/stay of demand. Held: AO has to necessarily apply his/her mind to the application for stay of demand and pass appropriate orders having regard to the extant directions and circulars including the memorandum of 29-2-2016. AO could not have imposed a precondition of the kind that has been done in the said order. Consequently, the said order was set aside. AO was directed to consider the application for stay of demand. In the meanwhile, revenue was directed not to take any coercive action for enforcing the demands.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
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